The number of income drawdown contracts sold by members of the Association of British Insurers (ABI) in the first quarter of this year increased by 64% compared to the corresponding period in 2014, research from ABI has revealed.
Its Retirement income statistics Q1 2015 report found that income drawdown contract sales rose from 6,700 in 2014 to 11,500 this year.
The report also found:
- 20,600 annuities were sold in the quarter compared to 28,700 in the fourth quarter of 2014.
- 62% of the annuities sold were internal, purchased by savers who bought them from the provider that they saved with. This compares to 47% in the first quarter of 2014.
- 42% of income drawdown customers were internal compared to 40% in both the first and fourth quarters of 2014.
Rob Yuille, manager for retirement policy at the Association of British Insurers, said: “These figures show the impact that pension flexibility had even before the full reforms came into force in April.
“The product choices being made on the eve of the changes reflect a changing market but also a diverse set of needs and preferences.
“This is a good reminder that people need guidance or advice to help them find the right retirement product for their circumstances.”